Time for a break-and-retest fellas! USD/JPY is currently sitting at an area of interest visible on the 4-hour forex time frame and may be due for a bounce. After all, stochastic is indicating oversold conditions, which means that dollar bears could use a break. A rally from USD/JPY’s current levels or the 61.8% Fib level could last until the previous highs near 102.75, but a sharp breakdown could mean that a longer-term selloff might be in the cards.
Are you in the mood for a breakout? GBP/USD seems ready to bust out of the descending triangle on its 4-hour forex time frame, with stochastic showing that there’s enough buying pressure left. Support near the 1.6750 minor psychological level has held like a boss in the past month, which means that pound bulls ain’t gonna let price fall below that area. If enough bulls join the party, GBP/USD might surge past the triangle resistance and go for as much as 250 pips in gains!
Range traders, feast your eyes on this AUD/USD setup! The pair is finding resistance at the top of its range, right around the .9400 major psychological level. Stochastic is already heading south, suggesting that Aussie bears are in control of price action. A selloff might last until the bottom of the range at the .9220 area or at least until the middle at .9300. Make sure you set your stop above the .9400 mark if you’re planning to short at market!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.